Trump’s EU Tariff Threat Not a Major Concern for Markets, Says Treasury Chief Bessent

On Thursday, U.S. Treasury Secretary Scott Bessent remarked that Wall Street should not be overly concerned about President Donald Trump’s recent threats to implement significant tariffs on foreign trade partners.

During an appearance on CNBC’s “Squawk on the Street,” Bessent reacted to Trump’s warning about increasing tariffs on European alcohol, indicating that the action would likely have minimal repercussions for the stock market.

“A couple of items affecting a single trading bloc? I don’t understand why that should pose a significant issue for the markets,” stated Bessent.

Earlier that same day, Trump warned the European Union of a potential 200% tariff on European alcohol exports, including wines and French champagnes, unless the EU lifted its proposed tariffs on American whiskeys.

In a post on Truth Social, Trump labeled the EU as “one of the most hostile and abusive taxing and tariffing authorities in the world,” claiming it was designed solely to take advantage of the United States.

On Wednesday, the EU announced a plan to implement a 50% tariff on U.S. whiskey, set to commence on April 1. This liquor tariff is part of a wider suite of proposed import duties targeting American goods.

The EU’s tariffs are a retaliation against Trump’s 25% tariffs imposed on all U.S. steel and aluminum imports, which went into effect on Wednesday.

Bessent refrained from addressing whether Trump’s announcement on Thursday was “premeditated” or if he had been informed about it ahead of time.

Major stock indexes continued to decline on Thursday morning, exacerbating a prolonged sell-off driven in part by concerns and uncertainties surrounding Trump’s tariff-heavy economic strategies.